Real Estate & Impact on Your Income Taxes

Your Home Could Affect Your Taxes

Points paid when you purchase your home are generally deductible in that year. Mortgage interest and real estate taxes paid on your home are deductible. When you sell your home that you owned and lived in for 2 of the last 5 years, the gain on the sale of up to $250,000 ($500,000 for married filing jointly) is not taxable if...

Declaring casualty and theft losses can be a confusing process. Taxpayers must declare casualty losses in the year they suffered them unless they are in a federally declared disaster area. Those suffering property losses in these areas may amend their previous year’s tax return to take the loss....

Homeowners experiencing “short sales” and foreclosures will get an extended break for “debt-forgiveness” tax consequences. Instead of treating cancellation of debt as taxable income on the foreclosure of a principle home, no taxes will be levied on discharges of qualified acquisition indebtedness of up to $2 million dollars for married taxpayers filing jointly and ...